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The price of Loom Network’s native LOOM token has seen significant gains over the past week, rising over 55% to $0.2667.
This marks the highest price LOOM has reached since its all-time high of $0.6834 in early 2018.
Loom Network is a Layer 2 scaling solution originally built for ethereum (eth) that has since pivoted to focus on enterprise blockchain solutions. The network uses a delegated proof-of-stake (DPoS) consensus model and aims to improve the scalability and usability of blockchain through features such as Plasma sidechains.
While LOOM is still almost 61% below its all-time high in 2018, the recent price surge has sparked renewed interest in the previously overlooked project. No apparent announcement would explain the recent price increase, suggesting the move is entirely attributable to market forces.
According to a report from October 13 analysis According to YouTube crypto analyst Cilinix, LOOM’s recent price movement appears to be the result of manipulation, given the lack of fundamental news driving the rise.
Cilinix notes that the high trading volume of exchanges like Upbit is often a sign of artificial price inflation. However, in the short term, manipulation could continue to drive the price up.
Cilinix identifies $0.32 as the next target if momentum continues, corresponding to the Fibonacci extension level. However, LOOM needs to hold support at $0.225 to remain bullish. A break below this level would likely signal a reversal and fall back to $0.10.
For now, Cilinix suggests that experienced traders closely watch $0.30 on the upside and $0.225 on the downside for signs of which direction LOOM could break. Caution is warranted, given the likelihood of manipulation driving recent gains.
